MICRO-CREDIT & NGO: A MEANS TO ALLEVIATE POVERTY IN BANGLADESH

Abstract

The study is about whether micro-credit facility by NGOs impact the rural poor people of Bangladesh to alleviate poverty. This study is done to examine the role of micro-credit in reducing poverty by giving the poor an access to finance to engage in income-generating activities and improve their living standard. Seven borrowers of micro-credit loans of ASA were selected randomly from Salika Upazila, Kushtia district, Bangladesh as a sample of the study. A qualitative method has been used to analyze and draw conclusions and recommendations from the data gathered through interviewing the borrowers through the telephone. This report tries to cover the role of micro-credit on the daily life of the rural poor people and how it reduces poverty in Bangladesh. Based on the finding and analysis, it is established that micro-credit has a positive impact on the life of the borrowers and it increases their income level, makes them self-employed, their basic needs can be fulfilled and overall their living standard can be improved to reduce poverty, It was also established that if the micro-credit loan is used for an unproductive purpose and personal consumption, then it has a negative impact on the borrower and creates more burden which makes them fall deep in the poverty cycle. Thus proper utilization of the micro-credit loan is required to alleviate poverty in Bangladesh.